Jefferies Maintains an 'Underperform' on Interpublic Group (IPG); Raising PT to $10

Jefferies maintains an 'Underperform' on Interpublic Group (NYSE: IPG) price target raised from $9 to $10.

Jefferies analyst said, "We update our model to reflect FY’11 actuals and 2012 guidance. We slightly increase our organic growth forecast from +3.0% to +3.2% on management’s optimistic tone. We also incorporate management guidance of +50bps of margin expansion during the year. We had previously expected 140bps but the 2011 outperformance was strong enough to pull a significant amount of the improvement into the previous year. We also update our diluted share count following the announcement the company will redeem the 2023 convertible notes and cancel the resulting 33m shares. Our adjusted EPS forecast increases +3% in both 2012 and 2013. We lift our price target to $10 to reflect our new earnings forecast, lower share count, and sector rerating."

For an analyst ratings summary and ratings history on Interpublic Group click here. For more ratings news on Interpublic Group click here.

Shares of Interpublic Group closed at $11.39 yesterday.

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